The Evolution of Power Markets and Changing Technologies

January 31, 2019 | Charleston, SC ::

0119-market-evolution

The electric energy world is in the midst of dramatic and disruptive change at many levels. The convergence of technologies has never been as rapid, or as important as it is today, and the energy industry is undergoing a period of extremely fast-paced evolution that was not visible to most participants even five years ago. This highly-interactive seminar is designed to provide a practical overview of U.S. power markets and how they are evolving. It will discuss the underlying regulatory frameworks helping to facilitate this change. It will highlight important topics concerning how power markets function, and how the introduction of new technologies is creating unprecedented challenges and opportunities, and the regulatory environment that supports or inhibits this evolution. To that end, the course will address the trends and economics of renewables and distributed generation, storage, electric vehicles, rapidly evolving business models, and the emerging ‘internet of things.’

Learning Outcomes

• Define and describe the major issues related to restructured electricity markets
• Review critical issues affecting planning for resources in power markets
• Explain basic functions of Independent System Operators (ISOs) and Regional Transmission Operators (RTOs), including energy and capacity markets, dispatch of power resources, and both supply and demand curves
• Discuss considerations relating to adoption of new technologies, including economics and market rules
• Examine cost curves, technological developments, and other considerations affecting the development of renewable resources and integration into the power grid
• Analyze the impact and implications of financial structures, such as third-party financing and securitization
• Explain the role of the customer as ‘prosumer’ and daily bi-directional interaction of customers and power grid with Demand Response and net metering
• Identify the critical role of regulatory policy on cost-effectiveness, deployment, and adoption of new technology
• Review the impact of distributed technologies such as solar, storage, and intelligent end use assets on the electric utility industry
• Recognize the trends, challenges, and opportunities for utilities, start-ups, investors, consumers and society in the coming decade

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.2 CEUs for this event.

 

Requirements for a Successful Completion of Program

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

This program will use PowerPoint Presentations, group discussions, as well as active participation.

Thursday, January 31, 2019

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 a.m. – 5:00 p.m. :: Course Timing

12:00 – 1:00 p.m. :: Group Luncheon

Market Structures: Regulated and Restructured Competitive Power Markets

Familiarization with the structures and rationale for various types of power markets, the evolution of competitive markets, and what each of the actors does

• The Physics of Electricity
• Regulated Monopolies
• The Rationale for, and Emergence of, Competitive Power Markets
• Today’s Regulatory Construct
• FERC – Activities, Trends, Enforcement Activities
• PUCs – Roles and Responsibilities within the Context of Market Evolution
• NERC (Advisory)
• State Legislatures

How Competitive Markets Work (Who Does What)?

Review of the actors and their various roles in the system

• Role and Responsibilities of ISO/RTO
• How ISOs/RTOs are Structured
• Role of Generators – System Power vs. Unit Contingent
• Capacity and Energy – Markets and Approaches
• Retail Suppliers – Role and Product Offerings
• Risk and Volatility – Price Caps and the Winter of 2013/14
• Role of Utilities

Electricity Generation Assets

Familiarity with traditional generating assets and properties

• Properties of Common Generation Resources
• Capital vs. Operating Costs
• Levelized Costs of Energy
• Dispatchability of Common Resources From Coal to Wind
• The Typical Resource Stack

Recent Changes to the Established Order

Explain the large recent conversion to gas-fired generation, as well as the emergence of utility-scale wind and solar

• The Role of Natural Gas-Fired Facilities in the System
• The Impact of Hydraulic Fracturing
• Current Market Dynamics
• The Introduction of Utility-Scale Wind and Solar
• Declining Cost Curves & Increased Efficiencies
• Impact of Renewables on Marginal Pricing
• Integration Issues (Transmission, Planning, and Forecasting)
• Other Current Trends in U.S. Generating Fleet (Additions and Retirements of Nuclear and Coal)

The Demand/Supply-Side Interface: It’s 3:30 PM – Do You Know What Your Electrons Are Costing You?

Explain the interaction between supply and demand and customer interaction with electricity markets

• Customer Interaction with Power Markets and FERC Orders (Demand Response)
• Customer Elasticities
• Other Emerging Products Behind the Meter (efficiency, solar, storage, reliability, dashboards)

Friday, February 1, 2019

7:30 – 8:00 a.m. :: Continental Breakfast

8:00 a.m. – 12:00 p.m. :: Course Timing

The Emergence of New Technologies and the Threat to The Existing Order

Appreciate the implications of these emerging technologies, cost and deployment curves, financing considerations, and associated regulatory policies

• Distributed Solar
• Improvements in Cost Efficiencies (Past Five Years and Projected, and Revisited Net Metering)
• Hard and Soft Cost Reductions: Room to Improve
• The Role of Third Party Financing and Other Emerging Financial Models
• The Evolution of Solar Technologies
• Hybrid Solar-Storage: Tesla First Solar Model
• Electric Vehicles and Storage
• Cost Curves, Adoption Trends, Charging Patterns, and Implications for the Power Grid
• CHP: Traditional Gas-Fired and Fuel Cells
• Applications, Basic Economics, and Value Proposition
• Better End-Use Technologies; LEDs, Controls Systems, NEST Thermostats
• Resiliency, Reliability, and Electricity
• The Emergence of Micro-grids
• Back-up Power
• Power Quality and 5 9’s: Why All Electrons Are Not Alike
• How Different SICs Approach the Topic

The Regulatory Battle and What’s at Stake: Net Metering, and Other Issues

Explain the implications for various parties involved in the regulatory debate, as well as potential alternatives

• Net Metering and What’s At Stake: The Regulatory Battles in Arizona, Hawaii, Nevada, and Elsewhere
• California Targets and Implications for the Supply/Demand Curve
• The Value of Solar Approach
• The Possibilities for “The Utility Death Spiral” and Emerging Models Such as NY REV

Innovation and Disruption: The Genie Is Out of the Bottle

Understand the tectonic shift in innovation and new business models taking place across the industry, and why they will not slow down

• Creative Destruction, and Implications for the Electric Industry
• Cheaper Chip Sets, the Internet of Things, and Intelligence Migrates to the Periphery
• Christensen and Innovation/Disruption
• HBS New Models Concerning Innovation
• The Pace of Innovation: Energy-Related Patents and The Role of High-Performance Computing
• Turmoil Creates Opportunity
• Emerging Business Models

Peter Kelly-Detwiler, Principal, NorthBridge Energy Partners

Peter Kelly-Detwiler currently advises technology companies and customers concerning the integration of energy-consuming and producing assets into the power grid. He has 27 years of experience in the electric energy industry, with 15 years as an executive in competitive retail markets, since their inception in 1997. He served in various functions within the industry, including Director of Customer Care (East Coast) for NewEnergy Ventures. Prior to NorthBridge, he was Sr. Vice President of Constellation Energy’s Load Response group. In this function, he created this unit and oversaw its growth to become a business with approximately $80 mn in revenue, capable of dispatching 1700 MW of customer load.

Mr. Kelly-Detwiler lectures frequently, has appeared on public television, and is also a frequent contributor on energy-related issues (over 240 posts) to Forbes.com. In this latter capacity, he has written on topics related to wind, storage, electric vehicles, shale gas, LEDs and numerous other issues. He has interviewed executives from dozens of companies and helped to provide context and meaning in the discussion of new technologies and market developments. As a consultant, he has provided strategic support to Fortune 100 companies such as Nike and GE, and advised leading companies and start-ups in the renewable energy space.

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The Evolution of Power Markets and Changing Technologies

January 31, 2019 | Charleston, SC